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The global Pokemon craze invaded Singapore a few days back. The streets were horded with people from all walks of life, lured to these PokeStops scattered all over the island. I do not remember Singapore's Park Connector Network (PCN) ever being this crowded. People could easily mistaken it for Pokemon Connector Network (PCN too!). *Pun intended!* Singaporeans were basically camping at places such as Yishun Park, Punggol Waterway, Bedok Reservoir, etc. to hunt for Pokemon!

Pokemon Go Gamers can be Good Investors. They should be!

I do believe Pokemon Go Gamers have the mental and emotional tools to be good investors. However, if only people were as crazy about their financial health, putting this obsession and their resources to achieve other results, they could be very successful in "retiring" earlier.

To clarify the term - "good investors", I am referring to investors that are investing to achieve financial freedom and retire early. I believe that investing is not all about the products. It’s about the process. A good investor has to be committed because it is a long marathon to see some results.

Diligent and Passionate

Pokemon Go Gamers have to basically Walk, Walk, Walk, Camp, then Walk, Walk, Walk, and Camp (again; repeat). Your chances of catching Pokemon increases as you walk around. If you were not diligent and passionate, chances are you would have probably given up.

Investing can be a lengthy and tiring process. This process includes continuous learning, being diligent in your savings, budgeting, risk & money management, patience in investing, learning from failures, and the list goes on.

People tend to like the easy way. After a few setbacks, they might think investing is not for everyone. What keeps them going? You have to be diligent. You have to be passionate about investing. Never giving up! Remember, it is a marathon.

Focus on their Mission

Pokemon Go Gamers are so focused, bowing their heads down, trying to collect imaginary pets. In fact, they were so focused that there were reports of people getting into accidents while playing Pokemon Go.

To myself and many others alike, achieving financial freedom is like a marathon. You have to stay focus. You have to focus on the mission. This mission (to me) is compounding my investment till my cash flow exceeds the expenditure of my desired lifestyle.

However Pokemon Go Gamers beware, avoid the herd mentality

I believe Pokemon Go is truly a phenomenon that transcends age, gender and culture. There are bound to be people just following the trend blindly. In human history, there is always the tendency of people mimicking or emulating the actions of other people in a large group. Often, herd behavior is the result of going with the crowd. This is especially true in investing.

Some people are heavily influenced by the actions of their friends or relatives. "If everybody around is investing in a particular stock, I should do the same." Beware! This might backfire. There is surely a reason why the world's greatest investor Warren Buffett said, "Be fearful when others are greedy, and be greedy when others are fearful!"

Summary

In summary, as mentioned earlier, if Pokemon Go Gamers were as crazy about their financial health, putting this obsession and their resources to achieve other results, they should achieve their financial freedom easily (if they choose to).

Transfer that diligence, passion and focus to investing early!

After driving for the last 8 years, I decided to "throw in the towel" last year. It was a painful decision as I had to familiarize myself with the public transport again.

What have I gained? Money. More spare cash.

What have I lost? Some convenience.

After 8 years...

Taking the train was initially uncomfortable - the crowd during peak hours, the stuffy trains at times (when the air-con does not seem to be working), etc. There are always reasons not to like public transportation.

However, it has, technically saved time. The morning commute to the office is shorter now. I am working in the city and it is a direct station to station travel. There is no need for additional transfers, in my case.

Driving in the morning is not necessarily that convenient with the morning traffic jam. Taking the train also excludes the annoyance of paying the ERP and FINDING PARKING LOTS. Furthermore, I have began reading during the morning commute and this is something I appreciate a lot.

Uber, Grab Car, and Taxi

Apart from the train, I rely, occasionally, with taxi trips. At times, I will choose the mode that provides me with the earliest pick-up. But most of the time, I will just compare the prices and go with the cheapest option.

I like Uber and Grab because their pricing are pretty straightforward. Of course, having to choose the option of UberX and GrabCar (Economy).

UberX - Base Rate: S$3.00; Per KM: S$0.45; Per Minute: S$0.20
GrabCar (Economy) - Base Rate: S$3.00; Per KM: S$0.80.

Taxis, on the other hand, have so many sur-charges that even a Singaporean like me can't remember. There are peak hour charges (25%), midnight charges (50%), CBD charges ($3), booking fees etc.

Having said that, I do notice that Taxi fares might be comparable (or even cheaper) to UberX and GrabCar (Ecomony) during non-peak hours excluding the booking fee. If you flag down a taxi, chances are, the fare will be cheaper during non-peak hours.

For the record, I personally feel UberX has cheaper fares compared to GrabCar (Economy) as long as there isn't a massive jam. I will also stay away from UberX or GrabCar (Economy) if there is a price surge.

Money Saved

I never really knew how much exactly was it to maintain a car monthly. There are always the additional hidden costs in some months - maintenance, extra parking fees, ERP charges, traffic fines, parking fines etc. The total amount could range from S$1,200 to S$1,800 a month.

My transportation cost now, is down to only S$300 to S$400 monthly. It can even be as low as S$200 if I did not splurge on taxi/private car hire fares.

Conclusion

I do miss the convenience of driving - when I want and wherever I want. But, the money saved is definitely a big sum and it could be put to better use. I am still considering if it will be wise to buy a small weekend car when we have kids eventually.

Dilemma indeed. #firstworldproblems

Few days ago, I felt so lazy to get out of bed, with my sleepy eyes, I lazed in bed reading a blog post - My talk on Funding your child's University Education at the Lifelong Learning Library.

And this paragraph caught my attention - "Along the way, I was able to blend in some ideas from economists along with some statistics to get parents to start thinking about the opportunity costs of paying such a large amount of money to tuition teachers and enrichment seminars and think about how large this money stash can get if it was invested in the stock market instead. This forms the heart of my dangerous idea : Money paid to tutors and enrichment schools could have been used to pay off dividends starting from the day your child graduates from a polytechnic."

What really got my attention - Dangerous Idea?

Not that I have any kids. But I decided to download the presentation deck to find out more details. The dangerous idea was presented in the following 2 slides (Source: Funding your Child's Education):

I did not attend the talk. My assumption and interpretation will be a tuition-free education environment for the child, relying sorely on the school, the child and the parent (i guess).

Would Singaporean parents actually consider it?

I believe nearly eight in 10 parents with children pay for private tuition in Singapore. The paper chase begins really early and tuition is considered a means to improve their children's grades and to help them keep up with others. I came from a non-tuition background and I did not have really good grades (average student). However, in this current era and context, I am not sure how receptive parents are to not providing any tuition to their kids. In fact, some parents might put in the extra hours at work just to provide tuition for their kids.

Controversial indeed.

Would you consider investing the money for your child instead even though there might be a need for tuition?

Even though, I never had a tuition day in my life, I am not sure.

What about the child?

The child will definitely be very happy not to spend the hours on tuition. This is an assumption. I believe there are kids that genuinely want tuition for better grades.

If I had inherited a S$340,000 portfolio immediately after I graduated from polytechnic, I would be ecstatic. At that age, I would not have managed such a big sum of money before. $10,000 was already a big sum. The tendency of spending the inherited portfolio will be high. I probably would not know how to manage it in the first place. It might be a case just like how many millionaire lottery winners lose their fortune eventually.

Really wonder how many parents would consider this plan.

People are probably more familiar with "Eat, Sleep, Train, Repeat". More commonly heard and I believe it is the mantra of many fitness enthusiasts throughout the world. I do often hear it from my slightly "crazier" peers that wants to be fit with a nice body.

“Eat, sleep, train, repeat” really simplifies what is essential for every successful fitness program. In fact, it is essential for a successful fitness enthusiast.

Now, "Salary in. Invest. Re-invest. Repeat" is not exactly my mantra but subconsciously I have been doing the same for a long period of time.

Started with learning how to Save

It all started with "Salary in. Save. Repeat" many years back. We all know the inflation in Singapore can be a nightmare for Savers, particularly with the low savings interest rates in our local banks. However, "Salary in. Save. Repeat" gave me a good foundation to build a sizable portfolio when I started to invest.

Read: Did I Manage To Save S$100K Before 28?

Discipline is still the key

At the end of the day, a mantra doesn't mean anything if you do not have the discipline to execute it religiously. Ask any fitness enthusiast, their good fitness, good body and good health did not appear overnight. It was years of effort.

Many people will be entice by get-rich-in-months schemes or training courses. But I still believe in the most traditional method of taking a step at a time to build my wealth. This is just my personal opinion. I am not bashing any get-rich-in-months schemes or training courses. These trainers had put in years of effort to build such expertise. These courses could kick start your investment journey but you still have to build your expertise over time.

Discipline + Right Knowledge is probably a better way of putting it.

Salary in. Invest. Re-invest. Repeat.

To sum-up, reasons for doing it:

1. I can't rely on bank interest rates.
2. I need my money to work for me.
3. I really do not want to have to work during my retirement years.
4. Most importantly, it has become part of my DNA to do it.

I have been watching 爱情保卫战 on YouTube recently. I can't believe such a show even exists. Comparing the shows on Channel 8 and 5, I think Singapore needs to be more creative in our reality shows. 爱情保卫战 is a China TV show featuring couples trying to resolve their issues. In fact, some couples featured in the show used it to validate their decision to the end their relationship.

Couples Quarreling Over (having different opinions on) Money $$$

There were various relationship issues showcased in 爱情保卫战. 3rd Party, Flirting, Lazy Husband, Lazy Wife, etc. And of course, quarreling over money.

Case 1: Husband / Wife controls all the finances. There were various examples of couples quarreling over this matter. However, in the example below, the Husband was the one "controlling the finance". The Wife had to hand over her monthly salary to the Husband. The Husband would then give her some allowance. But the Wife complained about her miserable allowance.

You will never imagine what was coming next? They were married for 13 years. The Husband's Mum managed their money throughout the 13 years. Wife passes the money to the Husband. Husband passes the money to his Mum for safe keeping. And the climax of the quarrel - the Husband doesn't even how much money has been saved by his Mum. *Applause*

Case 2: Girlfriend feels her Boyfriend is a Miser. They were just two different people having different opinion on money. One believed in quality (the Girl), the other believed in being practical (the Guy). I felt the Guy was overly practical and the Girl was overly spendthrift that led to their relationship issue.

This example should be quite common among relationships. Not being a miser but couples having different opinions on how to spend and save their money.

Case 3: Boyfriend believes buying 4D/ Toto is an Investment. I have heard people buying lottery as a form of hope. Buying lottery has an investment? We have to give this fellow (below) an award. The Girlfriend could no longer tolerate his gambling addiction and debts.

My Finance, Her Finance, and Our Finance

My Wife has always said, "Your money is my money, and my money is still my money. Understand!"

While she says that, our finances are managed separately (and individually). We do have a joint account for household expenses and savings.

Well, every couple has their own way of managing their finances. Although, I am unable to accept someone having total control over my finance or myself controlling my partner's money, it might work well for some couples. I do know that some of my friends' finances are managed by their respective partner.

How Should We Manage Our Finances

Some people can't even manage their own finance. Some couples have never communicated about management of their finances before their marriage.

I am not a relationship expert but I believe finance will be one important topic to have some common understanding and alignment.

To conclude, I think the best summary was given by this Love Expert on the show (See above).

I have been following various financial bloggers over a period of time already - both to stay motivated in my goal and also to learn more from them. Over time, I realized that there were some similarities (in terms of holding to certain stocks) in our portfolios. I was wondering what were the common stocks being held by these financial bloggers and myself.

Let's begin by saying that this post should not be construed as a reference to buy any stocks mentioned.

13 Common Stocks in the Portfolio

In no priority:

1. Suntec REIT

Suntec Real Estate Investment Trust is a real estate investment fund launched and managed by ARA Trust Management Limited. The company invests in income producing real estate assets which are used for commercial purposes. The company operates in three segments - retail, office and convention. Some of the assets in their portfolio consist of office and retail properties in Suntec City, one-third interest in Marina Bay Financial Centre Towers.

2. CapitaMall Trust

CapitaMall Trust invests in income producing retail properties. Its portfolio comprises many shopping malls, which are located in the suburban areas and downtown of Singapore. Many of these shopping malls are familiar household names - like Tampines Mall, Junction 8 etc.

3. DBS
4. OCBC

Both DBS and OCBC provide various commercial banking and financial services in Singapore.

5. Fraser Commercial Trust

Fraser Commercial Trust is a real estate investment trust with a portfolio of commercial real estate assets. Some of their commercial assets in Singapore are 55 Market Street and Alexandra Techno-park etc.

6. ST Engineering

Singapore Technologies Engineering provides solutions and services in the aerospace, electronics, land systems and marine sector. Singaporean serving the military in Singapore would be familiar with this company and their products/ services.

7. AIMS AMP Capital Industrial REIT

AIMS is another real estate investment trust and they invest in a portfolio of income producing industrial real estate located mainly in Singapore. Some of the industrial assets include 1 Kallang Way 2A, 8 Senoko South Road, 10 Soon Lee Road etc.

8. Keppel Corp

Keppel Corporation is engaged in 4 segments - Offshore & Marine, Infrastructure, Property and Investment. Its Offshore & Marine segment, which most people know better about, offers offshore oil-rig construction, shipbuilding, and ship repair and conversion.

9. M1
10. Starhub
11. Singtel

Another 3 household names that I think everybody knows.

12. SGX

Singapore Exchange (SGX) is engaged in operating integrated securities exchange and derivatives exchange in Singapore.

13. Soilbuild Business Space REIT

Soilbuild Business Space is another real estate investment trust. The company is engaged in investing in a portfolio of real estate assets which are used for business space purposes (includes Business Park and Industrial) in Singapore. Some of the assets in the portfolio includes Tuas Connection, Solaris etc.

Saizen REIT would have been in the list

Lastly,

14. Saizen REIT

Saizen REIT has completed his divestment of its entire portfolio of real estate assets to Triangle TMK. Most investors, including myself, will miss this REIT which invests in a diversified portfolio of real estate located in Japan (used primary for residential purposes).

Let me emphasize again, these stocks were bought at different times / prices by different financial bloggers. This should not be construed as a reference to buy any stocks mentioned above. Please do your own homework.

A reader emailed me asking me the difference between buying 1000 shares of one particular stock monthly and buying a fixed amount (i.e. S$3000) of a particular stock. The email exchanges got pretty confusing as you can imagine.

Simplifying the discussion, using this example - the difference between:

Option 1 - Buying 1000 shares of SPDR STI ETF (ES3) using Standard Chartered Trading Platform

Option 2 - Buying a fixed amount of S$3000 worth of SPDR STI ETF (ES3) using POSB Invest-Saver

He wanted to highlight to his colleagues that buying 1000 shares of the same stock monthly is not Dollar Cost Averaging (DCA). The concept of DCA seem to have confused some people.

Definition of Dollar Cost Averaging

Going back to basic and definition, DCA is the technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high.

So Option 1, buying 1 lot of the same stock monthly is not DCA.

Any difference in terms of performance?

The conversation went on to compare the performance or trade-off of both options. To be honest, it did not really matter to me. Both options will mean growing your portfolio and that is more important.

Nevertheless, I just did a simple calculation without including the transaction fees, any other cost and dividends (See below).

Good news is both portfolios have grown substantially over a period of 2 years

As of 30 March, the price of ES3 is S$2.88. Option 1 Portfolio is valued at S$72,000 and Option 2 Portfolio is valued at S$67.685. The good news is both portfolios have grown substantially over a period of 2 years.

So which is a better option?

The above is just an example based on a snapshot of 2 years. I personally feel the convenience of investing via (in this instance) Invest-Saver far outweighs having the discipline to buy 1000 shares of ES3 monthly via a trading platform.

With DCA, more shares are purchased when prices are low, and fewer shares are bought when prices are high. I believe not only in the power of DCA but also the simplicity in a product like Invest-Saver.

Would you start to time the market?

Would you miss out on your monthly purchases because of the higher stock price?

Would you stop buying according to your plan when the market starts turning Bearish?

Would you just forget to buy the stock for that particular month?

I believe I am not the only one noticing the #WhatsYourPlan (hashtag) all over social media. The Government's initiatives have definitely caught my attention, especially on the retirement front.

Educating the public, Gov.sg has mentioned on their site - What's your Plan? (click here) - that "saving for retirement can seem like a daunting task, but it need not be that way. Let us help you with tips to better manage your finances, grow your savings, and plan for your golden years."

I applaud Gov.sg for such initiatives to get people to think about their retirement. It ain't easy to get people to think for their retirement early (let alone plan for their retirement early). So since Gov.sg has been asking about our plans, here is my plan.

#WhatsMyPlan

1. Continue growing my CPF-SA to a Substantial Amount

In my previous posts - Minimum Sum of S$564,797 In Year 2047? and Four Building Blocks For My Retirement - I have mentioned that CPF is a fundamental part of my retirement. Will I totally rely on it for my retirement? NO! However, it is still a pillar to most Singaporeans in terms of retirement savings.

One known fact (hard truth) is that the Minimum Sum (now known as Basic Retirement Sum) will definitely grow / increase. Another known fact (hard truth for the next 5 years at least) is that I will continue to contribute to my CPF as long as I am employed. The Plan is simple. Just like every normal Singaporean, 1) I will continue to stay employed, contribute to my CPF and slowly grow my CPF accounts month by month; and 2) I will do micro-transfer of funds from my CPF-OA to my CPF-SA (Read - My First Transfer From CPF-OA To CPF-SA).

I have to do my part to accelerate my CPF-SA to a substantial amount and then let CPF Board do their work to compound the interest in my CPF-SA. Under the CPF Life scheme, I will then be provided a monthly payout for life from the time I turn 65. This is a form of retirement savings plus annuity.

2. Supplementary Retirement Scheme (SRS) to build a Bigger Nest Egg

I am in my 4th year of contributing to my SRS account - 4th Installment (Another S$12,750) In My SRS Account. I will not explain more about the SRS account in this post.

I have mentioned about my plan (many times) in various posts in this blog. 20 years of contribution and using the funds in the account to invest in the STI ETF. I would have contributed S$255,000 after 20 years.

In all investments, we are unable to predict how well our investment is going to pay off. With a simple calculation of an average annual return of 4%, this sum will be ~S$379,600. There will be years with big drops and years with big growth. As such, I still believe the 4% is rather conservative.

3. Generating Passive Income with Dividends Paying Stocks

I am building a portfolio of dividend paying stocks. I personally believe the stock market is one of the best source of passive income through dividend paying stocks. In my last post, Five Bloggers Collecting > S$10,000 of Dividends Yearly, I have highlighted several bloggers that have achieved it.

While I am still far from my goal of exceeding my monthly paycheck, I have seen progress over the last 2 years (see below). The next milestone is to reach the S$10,000 mark.

Conclusion

I have highlighted Three Big Components of my Plan.

Planning for your retirement is an important issue, but it is also something we often procrastinate on. I, totally, resonated with a featured video by Gov.sg (Watch it below) because I have seen with my own eyes family members that are suffering.

Jimmy: "Ready to retire?"
Uncle: "I've been getting ready since I was your age."
Jimmy: "You're joking right? Whatever I can earn, I just spend."

The video went on to share Uncle Lim's story about how he was once like Jimmy.

To my partner (that will never be reading this post), in my vows, I did mention the promise to save and grow old together in our own home.

So everyone, #WhatsYourPlan for your retirement?

Everyone wants a comfortable retirement. Nobody wants to be old and still have to worry about their daily expenses. There are so many roads (or methods) leading to a final destination. I have been laying bricks and building "4 blocks" for my retirement. I wish it could be completed ASAP and maybe, just maybe, I will consider retiring at 45 and venture into a new experience.

Essential Building Blocks

1. CPF

The Central Provident Fund (CPF) is a compulsory savings plan for Singaporeans and PRs. Since CPF is compulsory, it is definitely many Singaporeans primarily way to fund their retirement.

For me, the CPF Special Account (CPF-SA) is my essential building block that solely focus on building up the funds for old age. Leveraging the guaranteed interest rates of 4% per year, I hope to quickly meet the Minimum Sum (now known as Full Retirement Sum) and let the magic of compound interest do its work.

My CPF-SA building block is currently close to 50% completion (based on the Minimum Sum in 2015).

Once my CPF-SA reaches the Minimum Sum, I know I will be receiving a monthly payout once I reach 65. Not fantastic payouts we are talking about, payouts for very basic expenditure. So if anyone is just relying on their CPF for retirement, please think again.

2. SRS

According to Ministry of Finance, Supplementary Retirement Scheme (SRS) is part of Singapore government's strategy to address the financial needs of a greying population by encouraging Singaporeans to save more for their old age. The SRS complements the CPF; however it is voluntary. The voluntary contributions (subject to a cap) to the SRS are eligible for tax relief. These contributions can be used to purchase various investment instruments too. Well, there are some drawbacks too - like your funds will be locked away for a few decades and 50% of your withdrawals are still taxable at retirement.

I have contributed for 4 straight years - 4th Installment (Another S$12,750) In My SRS Account - into my SRS account. The plan is to contribute for 20 years.

My SRS building block is currently close to 25% completion.

As mentioned, the contributions can be used to purchase investment instruments. And since the money is locked for a few decades, it gives me the opportunity to invest for the long term and that is exactly what I am doing.

3. Stocks Portfolio

I want to create a portfolio that is able to give me dividends that exceeds my expenses. Building such a portfolio takes time. I have categorized my progress in stages:

Stage 1: Dividends of S$2,000 (monthly) - That will pay for one of my biggest expenses monthly - housing.

Stage 2: Dividends of S$5,000 (monthly) - At this stage, I believe it pretty much covers all my expenses monthly.

Stage 3: Dividends of S$10,000 (monthly) - A goal I would like to achieve. Really inspired by AK - How did AK create a 6 digits annual passive income?

My Stock Portfolio building block is currently only in Stage 1 and it is just 25% completed.

It took quite some time just to receive slightly more than S$500 of dividends monthly. Building this block is a long marathon. It feels like an Ultra-marathon.

4. Insurance

The bedrock! Not for investing in Investment-Linked Insurance Policy. But for policies that cover the cost of medical treatments and for policies that my beneficiaries are taken care of in some ways financially from my sudden dismissal. Anything can happen; accidents or illnesses could wipe away my savings.

Conclusion

In summary, these building blocks are not exhaustive. Your retirement plan or building blocks could consist your own personal savings or your housing etc. Each building block will take time to complete. So do plan for your retirement blocks early and work on it.

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Achieving Financial Freedom is my equivalent to an Olympic Gold

Pokemon Go Gamers can be Good Investors

July 2016 Portfolio Update - Growing My Passive Income

Without a car, one year on... Uberizing!

Forgo Your Child Tuition; Invest the $ Instead

Salary in. Invest. Re-invest. Repeat.

2016 1H Dividend Update - Growing My Passive Income

June 2016 Portfolio Update - Growing My Passive Income

爱情保卫战 - Financial Issues of Quarreling Couples

Apr 2016 Portfolio Update - Growing My Passive Income

Confident to Reach S$10,000 Dividend Mark in 2016

How long will your 'Interest Bucket' take to generate $2.4K?

2016 Q1 Dividend Update - Growing My Passive Income

Thirteen (13) Common Stocks Held By Financial Bloggers

Mar 2016 Portfolio Update - Growing My Passive Income

Buying 1 Lot of the Same Stock Monthly is not DCA?

#WhatsYourPlan (for Retirement)

Five Bloggers Collecting > S$10,000 of Dividends Yearly

Four Building Blocks for My Retirement